The shares of electronics manufacturer Whirlpool and Voltas recorded significant gains on June 26. This came after a report claimed that their rival Panasonic is exiting loss-making categories like refrigerators and washing machines in India.
Japanese electronics major Panasonic Holdings is downsizing its consumer electronics business in India, and is exiting refrigerators and washing machine categories where they failed to capture significant market shares, The Economic Times reported citing people familiar with the matter.
Panasonic spokesperson confirms exit from two segments
A spokesperson for Panasonic has confirmed to the publication that it is indeed exiting the two segments in India. The report further said that the company is shutting its production line for these products at its factory in Haryana's Jhajjar. The unit currently operates as a contract manufacturer for other brands.
"In line with our global strategy and evolving market dynamics, Panasonic in India is rebuilding operations to focus on future-ready growth segments such as home automation, heating ventilation and cooling (AC), B2B solutions, electricals and energy solutions. Panasonic will support dealers in inventory liquidation and continue providing full customer service, including parts and warranty coverage," the report quoted the Panasonic spokesperson as saying.
Layoffs to follow at Panasonic
Significant layoffs will be part of Panasonic's restructuring exercise, with the number being in high double digits, the report added. After this, the company will continue to operate in televisions, air-conditioner and other segments in India.
When asked about the possible layoffs, the company's representative said that it is a difficult but a necessary step, and that the firm is fully committed to support and aid the affected employees.
Also read: Panasonic aims for double-digit growth in current fiscal
The exit of a major player from the market will likely benefit the other players in the segments by boosting their market share. Whirlpool shares jumped over 5 percent to hit its day's high of Rs 1,455 apiece, while Voltas shares rose over 2 percent to trade at Rs 1,341 apiece.
Later during the day, Whirlpool and Voltas shares pared significant gains. At 10.35 am, Whirlpool shares were trading over 2 percent higher at Rs 1,416 apiece. Voltas shares were meanwhile trading in the green with marginal gains at Rs 1,315 apiece.
Also read: Our LIVE blog on stock market updates
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
